• Profit Attributable to Shareholders Increased by 30%  to HK$1,940 Million
• Profit from direct operating fund management and investment businesses increased 28% to HK$ 1.267 billion
• Total fundraising of the Group’s funds increased to HK$ 138.9 billion, up 8% since the end of 2017
• Strengthened international strategy with enhanced global asset allocation
• Focused on long-term strategic investments in industries with potential

China Everbright Limited (“Everbright” or “the Group”, stock code: 165.HK) today announced its interim results for the six months ended 30 June 2018.

Riding on its cross-border platform advantages, Everbright’s financial data continue to grow steadily. As at the end of June 2018, the Group managed a total of 55 funds and had 134 primary market post-investment management projects and 25 secondary market investment portfolios, of which, 13 primary market projects have been listed on various stock markets around the world, reflecting the global reach of the Group’s investment footprint.

In the first half of 2018, Everbright posted profit attributable to shareholders of HK$1,940 million, up 30% year-on-year, in which, its direct operating businesses (Fund Management Business and Principal Investment Business) recorded a profit of HK$1,267 million, up 28% year-on-year. The Board declared the payment of an interim dividend of HK$0.26 per share for the six months ended 30 June 2018 (1H 2017: HK$0.25 per share).

2018 Interim Results Business Review

Regarding the Fund Management Business, Everbright has comprehensive capabilities in fundraising, investment, management and exit, helping its investment and asset management platform to achieve stable development against the backdrop of a very challenging environment in the first half of 2018.

• Fundraising: Diversified and Dual-currency Funding Sources

In spite of China’s tightening financial regulations and volatility caused by global political uncertainties, the total fundraising amount increased to HK$138.9 billion, up 8% compared with the end of 2017. Apart from a number of newly established RMB funds, the Group’s USD funds include: the Walden CEL Global Fund, CEL Global Investment Fund and Everbright Dynamic Bond Fund, all of which made an important contribution to the Group’s fundraising activities.

• Investment: Enhanced Global Asset Allocation Based on Globalisation Strategy

During the period under review, the Group’s overseas funds invested in several overseas enterprises, including the biggest Norwegian public transport operator, Boreal Holding AS, Iceland energy company Arctic Green, and US semi-conductor companies, AQUANTIA and ACM Research. Everbright currently has 26 overseas investment projects in the US, Europe, the Middle East and Southeast Asia, covering various sectors including infrastructure, high-end manufacturing and the hi-tech sectors, among others.

• Management: Strengthened industry capabilities via robust industry-finance integration

Everbright relies on its strong post-investment management capabilities, to improve investees’ operational and profit efficiency through industry-finance integration. One successful example is Everbright’s real estate management platforms, EBA Investments.

In 2016, Everbright’s real estate fund management platform EBA Investments, injected shares into Everbright Jiabao Co., Ltd. (Stock code: 600622.SH), a mainland Chinese listed company, and became its controlling stakeholder. Through this indirect listing, the development strategy of EBA Investments, i.e. “cross-border real estate asset management platform” with differentiated and multi-currencies, has been set.

In 2018, the Group debuted one “IMIX Park” project in Shanghai’s Jing’an District, and one “IMIX+” project in Chongqing Chaotianmen, both of which are the investment and management projects of EBA Investments. Meanwhile, EBA Investments also finished the planning of logistics industrial parks in China’s transportation-hub areas.

As at the end of June 2018, EBA Investments also managed approximately 34 projects including the New Everbright Centre in Beijing and the EBA Investments Center in Shanghai, covering residential properties, commercial properties, office buildings and logistics properties, with a total fundraising capacity of RMB49.7 billion. The platform has ranked No.1 in the “Top 10 Funds in terms of Comprehensive Strength among the China Real Estate Funds” for four consecutive years between 2015 and 2018.

• Exit: Sufficient Project Reserves and Steady Gains with Well-scheduled Exits

During the period under review, Everbright accomplished several full or partial divestments, including the divestment of Macquarie Greater China Infrastructure Fund LP and Betta Pharmaceuticals among others. In addition, in the primary market, there are 13 projects listed on different stock exchanges and being traded around the world. Our sufficient project reserves and diversified trading methods can help the Group to realise stable and healthy capital gains in an orderly manner.

Principal Investment Business complements the fund management business balancing the Group’s income structure. The Group also conducts long-term strategic investment in industries such as aircraft leasing and elderly care, in order to develop its potential opportunities.

Focused on long-term strategic investment in industries with  potential

Everbright acquired CALC in 2011. After seven years of development and integration, CALC has grown from a small-scale aircraft lessor to an operational aircraft lessor ranking No.1 in China. CALC’s fleet size and total value of orderbook ranks No.9 globally. CALC is also the first aircraft lessor listed in Asia, and the only Chinese lessor with a disassembling centre.

In the first half of this year, Everbright utilised its capability and advantages in private equity and fund management, helping CALC to establish CAG, an investment vehicle that focuses on aircraft assets, commencing its transformation of asset-light business model development. As at the end of June, CALC’s fleet size increased to 115 aircraft, with 189 aircraft to be delivered in orderbook, setting a solid foundation for its strategic target of growing into a world-class aircraft lessor in full-value chain solutions provider.

In addition, Everbright proactively plans in China’s elderly care industry. Its “Beijing Huichen Senior Care” and “Enjoy Twilight Years” have set up elderly care institutions in main cities in China. Setting its foot in Beijing and Shanghai with footprints across China. So far, there are 20 elderly care facilities with over 7,000 beds under management in total.

Strategy and Outlook

Looking ahead to the second half of 2018, as tensions between China and the US intensify, global political and regulatory risks are likely to increase and China new asset management rules have created challenges to fundraising, investments and divestment. Meanwhile, demands for diversified, multi-currency investment products have increased among Chinese investors. The asset management industry will continue to differentiate, the leaders’ effect is becoming more obvious. Asset management institutions with a good investment track record and relatively large AUM as well as strong integrated financing capability will continue to attract more capital and investment opportunities. 

Against this backdrop, Everbright will leverage on its cross-border advantages, enhance its core capability in fundraising, investment, post-investment management and divestment in the second half of this year. Apart from continued increasing USD funds, Everbright will steadily promote the setup of RMB funds such as the “Aviation-focus Silk Road Fund”. In addition, based on the newly set Hunan-CEL Investment Fund, Everbright will continue to grow its Fund of Funds to deliver its annual growth target of 20% or more in its overall Everbright funds.

Everbright will continue explore overseas opportunities through Everbright Overseas Infrastructure Fund and CEL Global Investment Fund keeping balance among domestic and overseas assets, RMB and foreign bonds, long-mid-short-term capital allocations.

Everbright made well-scheduled divestments across various sectors on the back of a rich reserve of ready-for-divestment projects, will continue to develop different divestment channels such as IPO, M&A, and equity transfer in order to realize capital gains in an orderly manner.

As a part of the “dual business drivers”, Principal Investment Business complements the Fund Management Business as well as increases Everbright’s overall income stability with its short to mid-term structured financing offerings. Meanwhile, Everbright continues to develop strategic industries such as aircraft leasing and elderly care, guiding the investees to become leaders in their sectors.